What's In The Offing For Anthem's (ANTM) Earnings In Q2?
Zacks Investment Research | Jul 21, 2019 09:54PM ET
Anthem Inc. (NYSE:ANTM) will release second-quarter 2019 results on Jul 24 before market open. In the first quarter of 2019, the company delivered a positive earnings surprise of 2.9%, driven by higher membership and the expansion of its clinical and specialty services.
Let’s see, how things are shaping up for this announcement.
The company’s performance in the to-be-reported quarter is likely to be supported by a robust operating performance and strength displayed at all its businesses. Membership of the company is also expected to improve in the same time frame. The Zacks Consensus Estimate for earnings is pegged at $4.61, up 8.5% from the year-ago reported figure.
Its top line is also likely to continue its winning streak on the back of its Government business and Commercial & Specialty Business segments. The Zacks Consensus Estimate for second-quarter revenues stands at $24.7 billion, up 8.7% from the prior-year reported number.
The consensus mark for revenues in the Commercial Business segment and the Government business indicates a respective 15% and 9.2% rise from the year-earlier reported figures.
Increase in membership is projected in Medicare business as the company is focusing on growing this line of business.
Total medical membership for the quarter to be reported is likely to burgeon owing to the company’s constant efforts to boost its portfolio. The Zacks Consensus Estimate for medical enrollment implies an improvement of 3.6% from the year-ago reported figure.
The second quarter has possibly witnessed a steady cash flow in the company. Moreover, Anthem is anticipated to have continued enhancing its shareholder value through a disciplined capital deployment.
However, we predict an elevated selling, general and administrative expense ratio as Anthem escalates investment in areas, such as technology modernization, population and consumer digital health plus data analytics and product development capabilities.
Also, its overdependence on debt might persist to weigh down the margins.
What the Quantitative Model States
Our proven model conclusively shows that Anthem is likely to beat on earnings this time around. This is because the stock has the right combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.